INSTANT VIEW-Canada unemployment rate jumps to 6.9% in April

TORONTO, May 9 (Reuters) - Canada's unemployment rate rose to 6.9% in April and the employment number was largely flat with minimal gains of net 7,400 jobs, Statistics Canada data showed on Friday.

Market reaction: CAD/

Link: https://www150.statcan.gc.ca/n1/daily-quotidien/250509/dq250509a-eng.htm?HPA=1

COMMENTARY

STEPHEN BROWN, DEPUTY CHIEF NORTH AMERICA ECONOMIST, CAPITAL ECONOMICS

"Employment would have fallen again in April were it not for the boost from the federal election, which supports our view that the Bank of Canada will resume its loosening cycle next month and ultimately cut by a little more than markets have recently been pricing in."

ALI JAFFERY, SENIOR ECONOMIST, CIBC CAPITAL MARKETS

"Overall, we are seeing a job market that was weak heading into the trade war, now looking like it could soon buckle. Today's report supports the case for a Bank of Canada cut in June."

DEREK HOLT, VICE PRESIDENT OF CAPITAL MARKETS ECONOMICS, SCOTIABANK

"It was very weak excluding the election component ... We had pretty strong election related hiring but everything else was weak. I'm a little bit reserved on how to interpret that because it's the weakest seasonal adjustment factor on record for like months of April, so it's artificially tamping down job growth through that effect."

"And so for the Bank of Canada, I think they're going to need more evidence and it's the same debate, how do they balance the growth risks and job risks versus their core inflation mandate and that's still yet to be informed in my opinion."